Gold, Oil Backs Off as Iran Situation Cools

James West
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Gold and oil have now corrected significantly since the Iranian missile attack on US bases on Monday permitted both sides to claim victory. Though the ulterior motives evident on both sides demonstrate once again how the political class is actually the least trustworthy to call themselves government.

And so, the same forces that subsidize the FAANG stocks creating the false impression of robust economy and suppress gold prices through futures market price manipulation are able to return their focus to these critical perception management tasks.

So, while the drum is yet again being beaten for the imminent price liftoff of gold at long last, more likely the scenario will look like it did just prior to the Iran fiasco, with gold prices being routinely clobbered like a baby seal into a price range designed to curb the enthusiasm of all but the most ardent of gold bugs.

It is naive to perceive markets as the free and unfettered exchange of goods and services among earnest buyers and sellers.

It has instead becoming a dark electronic soup where intermediaries sell assets they neither have nor can afford, buyers place orders they have no intention or ability to fulfill, and regulators hold up the opaque cloak behind which these frauds are perpetuated every day.

In considering the fundamental reasons why gold should continue to rise – currency debasement across the entire G7, debt that is so disproportionately grander than any sovereign borrowers ability to repay, let alone service – it is reasonable to expect the price of gold and oil to rise in response.

But the markets to not deliver reasonable results, because the fundamentals are the least impactful influence on markets clogged with corrosive layers of corrupt trade. The act of putting capital at risk in public markets goes far beyond an investor’s ability to anticipate moves based on rational analysis of fundamental influences, or a trader’s ability to capture a profit on technical indications.

It is more akin to placing a bet a roulette table where the croupier has a whole array of buttons out of sight he can push to skew the outcomes in his favour.

The best strategy one can deploy these days is to try to interpret moves by large institutional investors that indicate they have some inside, special knowledge of events about to unfold still not made public. Its now incumbent on one to identify the corrupt practices within the market, and align one’s bets with the most evil pro you can find.

James West

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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